Business Process

Dr Shubhangi Urkude
 Business Process
• Business processes
– Flows of material, information, knowledge
– Logically related set of tasks that define how specific business tasks are
performed
– May be tied to functional area or be cross-functional
• It is collection of activities required to produce a product or
service
• It is flexible and organisations can choose, make and
adhere processes of their own
• A process is designed/defined, coordinated and practiced
• Collection of various processes in coordination will make an
organization to perform
 Different Processes
• Recruitment( HR Process)
• Training( HR Process)
• Payroll( finance process)
• Invoicing( Finance Process)
• Getting Order( Sales process)
• Assembling( production process)
• Installation( service process)
Define processes to administer MBA
degree (at IBS)
Cashless Claims Process
Claims Process
 Types/Levels of Information Systems
• Transaction Process Systems(TPS)
– For operational managers
• Business Intelligence Systems(BI)
– For middle level managers and will help in decision making
– It is normally in the form of reports and dashboards
• Executive Support Systems(ESS)
– For senior level managers who use these along with BI
– Reports and dash boards in form of charts and graphs
– They are reviewed periodically( weekly ,monthly, quarterly etc.)
• Decision Support Systems(DSS)
– Support non-routine decision making
– DSS bring in information from external sources such as current stock
prices or product prices of competitors
– It also use internal data from TPS and MIS
– Systems use a variety of models to analyze data
Note: Shared portals/platforms may be used to have access to
required managers
Transaction Processing System

12
Business Intelligence System

ETL - Extract, Transform and Load

13
 Enterprise Applications
• Systems for linking the enterprise
• Span functional areas
• Execute business processes across the firm
• Include all levels of management
• Four major applications
– Enterprise systems
– Supply chain management systems
– Customer relationship management systems
– Knowledge management systems
Enterprise Application Architecture

Suppliers and customers

business partners

Enterprise sys.

Supply chain processes

Customer
management
relationship
management

Knowledge mgmt sys

Sales and Mktg production Finance HR

 Systems for Linking Enterprise
• Enterprise systems:
– Also called enterprise resource planning (ERP) systems
– Integrate data from key business processes into single
system
– Speed communication of information throughout firm
– Enable greater flexibility in responding to customer
requests, greater accuracy in order fulfillment
– Enable managers to assemble overall view of
operations
 Systems for Linking Enterprise
• Supply Chain Management (SCM) Systems
– Inter organizational system
– Manage relationships with suppliers, purchasing firms,
distributors, and logistics companies
– Manage shared information about orders, production,
inventory levels, and so on

• Customer Relationship Management(CRM) Systems

Used to optimise
– Increase Revenue and profits
– Customer satisfaction
– Customer retention
– Customer expansion
Enterprise Resource Planning (ERP)

18
Supply Chain Management (SCM)

19
Customer Relationship Management
(CRM)

20
 Systems for Linking Enterprise(contd.)
• Knowledge Management (KM) Systems
– Knowledge acquisition
– Knowledge retention
– Knowledge dispersion/distribution
– Proficiency building
– Continual improvement
– Customised knowledge building
• Intranet and Extranet for information sharing
• Intranets:
– Internal networks based on Internet standards
– Often are private access area in company’s website
• Extranets:
– Company websites accessible only to authorized vendors and suppliers
 Analyse processes
• Order fulfilling
– PO(Purchase order)
– GRN( Goods Received note)
– Acceptance Certificate( if required)
– Invoice
• Issuing a driving license (by RTO)
• Setting a question paper for term end exam
• Promotion process
 Reengineering of Process-Guidelines
• Process of reengineering of work
– Organize around outcomes, not around tasks
– Have those who use output of a process to
perform the process
– Treat geographically dispersed units as if they are
centralised
– Link parallel activities during the process, rather
than at the end of the process
– Capture information once at the source
 IT and Business Process Redesign
• Steps in business process design
– Develop business vision and process objectives
– Identify processes to be re-designed
– Understand and measure existing processes
– Identify IT levers
– Design and build prototype of the process
– Implement new process
– Continuous measurement
 Role of IT in Business processes
(re-design)
• Entities
– Inter-organizational processes
– Inter-functional processes
– Inter-personal processes
• Activities
– Operational activities
– Managerial activities
 Management challenges in Business
process re-design
• Guidelines to manage transition
– Create task force with people from cross functional
groups
– Have re-design teams work closely with managers and
staff
– Explain through the information systems group wrt
power offered by technology
– Build a team of industrial engineers with strong
interpersonal skills, understanding of multiple
functions, process measurement etc.
– Build IT technology platforms that support cross
functional applications.
Global e-business and
collaboration
Dr. Shubhangi Urkude
 E-business
• Use of digital technology and the internet to
execute major business processes in the
enterprise.
it includes
– Activities for the internal management
– Coordination with suppliers
– Coordination with customers and also
– E-commerce
 E-commerce
• It is that part of the e-business that deals with
buying and selling goods and services over the
internet.
It includes market transactions
Advertising
Marketing
Customer support
Security
Delivery
payment
 E-government
• Application of internet and networking
technologies to digitally enable government
and public sector agencies’ relationship with
citizens, business and other groups of
government
• Income tax
• Property tax
• EPF etc
 Collaboration
• In simple term it is team work
• It is working with others to achieve shared goals
or/and explicit goals
• Ranging from “one to one” to “many to many”
• It is dovetailed in all processes
• The extent and magnitude varies depending on
task
• Could be internal to organization or external or
mix of both
 Importance of Collaboration
• Changing nature of work (change in project,
department etc.)
• Growth of Professional work
– Buddy concept- knowledge sharing system
– Mentor concept - helping the individual grow and
accomplish goals
– OJT concept -To provide work experience enabling
students to apply what they learnt in the college and
acquire new skills
• Changing organization of the firm( structure change)
• Changing scope of the firm
• Emphasis on innovation( learning organizations)
• Changing culture of work and business( process
reengineering)
 Business benefits
• Improved productivity
• Improved Quality
• Innovation
• Improved customer service
• Improved customer base
 Requirements for effective
collaboration
• Collaboration capability
– Open culture
– Decentralised structure
– Breadth of collaboration
• Collaboration Technology
– For implementation and operations
– For strategic planning
Other extreme of good collaboration is “command
and control”
Tools and Technology for Collaboration
• e-mail
• Instant messaging
• MUD( Multi User Dimensions)
• Social network
• Blogs
• Wiki
• Virtual worlds
 Internet based collaboration
environment
• Virtual meeting systems( skype, Zoom etc.)
• Google apps and sites Google Drive, Google Docs,
etc.)
• Microsoft share-point–
– To create websites. You can use it as a secure place to
store, organize, share, and access information from
any device.
• Lotus notes—
– To send and receive email and Internet mail, schedule
appointments, browse the Web, and use powerful
business applications in your daily work.
Time Space Matrix
 Evaluation of Collaboration Tools
• Requirement analysis
• Feasibility analysis
• Time space matrix study
• Cost factor ( among available alternatives)
• Software/infrastructure requirement analysis
wrt cost effectiveness
• Security considerations
 Information Systems Department
• Also called IT department in some firms
– Programmers ( in house development)
– System analysts (liaison for integration and optimisation)
– Information system managers (eg-PM, Tele. Manager, DS)
– Chief information officer ( leadership role in exploring the
technology)
– Chief security( information security) officer
– Chief Privacy officer ( wrt knowledge and content)
– Chief knowledge officer ( knowledge management)
There is no fixed organization structure for IS.
 Obstacles to Using Global Information Systems

• Lack of Standardisation
• Cultural Differences
• Diverse regulatory practices
• Inadequate IT infrastructure
• Lack of professionals